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The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. Aug. 1 2 5 9 15 Summit Company sold merchandise on account to Beartooth Co., $49,050, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,370. Summit Company paid freight of $1,160 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $68,590, terms FOB shipping point. n/eom. The cost of the goods sold was $43,250. Beartooth Co. paid freight of $2,440 on August 5 purchase from Summit Company. Summit Company sold merchandise on account to Beartooth Co., $59,500, terms FOB shipping point, n/45. Summit paid freight of $1,755, which was added to the invoice. The cost of the goods sold was $31,720. 16 Beartooth Co. paid Summit Company for purchase of August 1. 220 Summit Company paid Beartooth Co. a cash refund of $1,100 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. 31 Beartooth Co. paid Summit Company on account for purchase of August 5 55 31 Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,500 that was returned from the August 15 sale. The cost of the merchandise returned was $2,500. Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact
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